Yes, that’s right pay less tax! Running a business is difficult enough as it is – you may be worried about revenues, business overhead expenses, staffing and more! Your business or corporate taxes may be well taken care of by your accountant, but did you know that you could use your company as a tool to minimize the taxes your pay on your investments?
Holding investments in your company will generally result in the same taxation as if you were to hold these investments personally. However, by doing so, you open up additional income splitting opportunities with your spouse and children through the payment of dividends which may ultimately result in a substantial tax savings. By keeping funds within your company, you will also defer the income tax paid on these funds, meaning you will be investing $100 instead of $75 after-taxes – this will result in a higher net return on your investments!
Contact one of our Certified Financial Planners so help you get more out of your business!